Bitcoin's price plummeted, breaking below the $90,000 mark in the wake of massive forced liquidations. The downward pressure appears to have intensified as leveraged positions accumulated during the short-term overheating phase are being liquidated all at once.
In the global virtual asset market, Bitcoin once plunged to the $86,000 range, shocking investors. $90,000 had been a key support level that had sustained market sentiment in recent months, but its collapse triggered a chain of sell-offs.
The direct catalyst for this decline was the massive liquidation in the futures market. As Bitcoin's price fell below $90,000, high-yield long positions were liquidated one after another. This, in turn, led to additional sell orders pouring into the market, accelerating the price decline. Volatility also increased significantly as speculative funds betting on short-term gains were quickly liquidated.
The inability of the spot market to sufficiently support buying pressure is also cited as a contributing factor to the decline. Slowing inflows into Bitcoin spot ETFs, particularly in the US market, prevented them from providing a defensive measure during the downturn. The Coinbase Premium Index also showed a downward trend, suggesting a weakening buying appetite among US investors.
Uncertainty about the macro environment is also dampening market sentiment. Growing concerns surrounding global interest rate policies and key economic indicators have led to a decline in overall risk appetite, and Bitcoin has not been immune to correction pressure. Altcoin markets have also shown a corresponding decline, reinforcing the overall risk aversion trend.
From a technical perspective, the market's attention is focused on the support level around $86,000. If this level holds, there remains room for a short-term technical rebound. However, if even this level collapses, further corrections to the $84,000-$82,000 range are being discussed. Conversely, if the price recovers to $90,000, some analysts predict a short-term rebound following excessive liquidation.
This recent plunge is seen as reiterating the Bitcoin market's vulnerability to leverage. Without sustained spot demand and long-term capital inflows, the volatile market, characterized by short-term surges followed by sharp declines, is likely to continue for the foreseeable future. Investors are advised to closely monitor market structure and changes in capital flows rather than simply price.
